Answer to Question #153824 in Economics for Mani

Question

1.How much whole life insurance at age 40 can be purchased by 25 net annual premiums of RM100 each?

2.Calculate the 10th terminal reserve by the prospective method for a RM1,000 20-payment endowment insurance maturing at age 65, the policy having been issued at age 35..

Answer 1

1.$25\times100(60-40)=50 000$

2.$20\times1000(65-35)=600 000$

$20*1000(65-45)=400 000$